Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels. The company offers memory products for the cloud server, enterprise, client, graphics, networking, industrial, and automotive markets, as well as for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; discrete storage products in component and wafers; and memory and storage products for the automotive, industrial, and consumer markets. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers; and web-based customer direct sales channel, as well as through channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.

Micron looks like a fundamentally strong company, but the current valuation is already noticeably ahead of the core multiples. On the one hand, the P/E ratio of 21.13 is below the industry median, and the debt burden is very low: debt/equity is only 0.05, while liquidity is comfortable — current ratio 3.42 and quick ratio 2.98. On the other hand, P/S at 20.16, P/B at 10.46, and P/FCF at 40.84 are significantly above industry benchmarks, which indicates an expensive valuation relative to revenue, the balance sheet, and free cash flow. At the same time, the quality of the business is truly high: ROE 70.55, ROA 49.92, ROI 61.91, and return on tangible equity 72.18 are at very strong levels and have increased noticeably compared with previous periods. Profitability is also impressive: gross margin 72.57, operating margin 65.63, and net margin 55.91 confirm strong operational efficiency. Revenue, earnings, and EBITDA trends over recent years are positive and very strong, which supports the thesis of a fundamental improvement in the business. However, some metrics already look cyclically overstretched in valuation terms, especially against the backdrop of a sharp rise in P/S and P/B multiples compared with earlier periods. The dividend yield of 0.02% has virtually no impact on the investment case and has declined noticeably, so the dividend factor is weak here. The reduction in long-term debt from 15.0 billion to 5.14 billion is a clear positive, as the balance sheet has become more resilient. Overall, the fundamentals justify a premium to the industry for quality and profitability, but not as high as implied by the current multiples. For an investor, this means upside potential remains, but the target should be cooled slightly because of the expensive valuation relative to sales, capital, and cash flow.

Micron Technology, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, значительно упал. Медведи в растерянности.

Medium index, significantly down. The bears are confused.

Слабый индекс, значительно упал. Нейтральный рынок.

Weak index, significantly down. Neutral market.

Средний индекс, значительно вырос. Нейтральный рынок.

Medium index, significantly up. Neutral market.

Средний индекс, значительно упал. Отток средств из лонгов увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased and is at a high level.

Слабый индекс, незначительно вырос. Приток средств в шорты остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into shorts remains at a low level.

Micron has strong profitability, liquidity, and debt reduction, but its valuation based on revenue, capital, and FCF already looks overstretched relative to the industry.

Key Points
Broadcom is a networking and infrastructure software giant with strong ties to enterprise and artificial intelligence data centers.
Micron Technology leads in memory and storage products, benefiting significantly from the surge in data center demand.
Which semiconductor stock deserves a spot in your portfolio?
As the artificial intelligence era accelerates, choosing between a diversified infrastructure leader and a specialized memory provider remains a key challenge for investors. Is Broadcom (NASDAQ:AVGO) or Micron Technology (NASDAQ:MU) the better buy today?
Broadcom offers a wide array of semiconductor and software solutions, ranging from networking hardware to enterprise software. Micron focuses specifically on memory and storage technologies like DRAM and NAND, which are essential for high-performance computing. While both companies are riding the wave of AI-driven demand, they offer different levels of exposure to various tech subsectors.
The case for Broadcom
Broadcom designs semiconductor and infrastructure software solutions for enterprise and AI data centers. Its business spans networking and storage, serving major clients through agreements like a $200 billion memorandum of understanding with Samsung and a $30 billion chip commitment from Apple (NASDAQ:AAPL). The company faces significant customer concentration, as sales to distributors account for nearly 48% of net revenue. Aggregate sales to its top five end customers represent approximately 40% of net revenue. Customer concentration like this adds a layer of risk to the business.
In its latest annual report, filed for FY 2025, revenue reached nearly $63.9 billion, representing a growth rate of roughly 23.9% over the previous year. This performance led to net income of approximately $23.1 billion. The company achieved a strong net margin of about 36.2% during this period. This growth highlights the increasing demand for its infrastructure and connectivity solutions in the semiconductor stocks space.
As of its November 2025 balance sheet, the debt-to-equity ratio is roughly 0.8x. This metric compares total debt to the equity held by shareholders. The current ratio is approximately 1.7x. Free cash flow for the year was nearly $26.9 billion, calculated as operating cash flow minus capital expenditures. Note that stock-based compensation represented roughly 27.5% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Micron Technology
Micron Technology is a global leader in memory and storage solutions, focusing on DRAM and NAND products for data centers and mobile devices. These components are vital for high-performance computing, with approximately 50% of total revenue focused in the data center end market. The company's customer base is highly concentrated, with over half of its total revenue derived from its top ten customers. This reliance on key hyperscale cloud providers creates potential volatility in ordering patterns.
In its latest annual report, filed for FY 2025, revenue reached close to $37.4 billion, which is a significant increase of approximately 48.9% compared to the prior year. This growth resulted in net income of nearly $8.5 billion. The company reported a net margin of about 22.8% for the fiscal year. This recovery follows a period of volatility in the memory markets, showing a strong return to profitability.
As of its August 2025 balance sheet, the debt-to-equity ratio is approximately 0.3x. A lower ratio suggests the company uses less debt relative to its shareholder equity. The current ratio is roughly 2.5x, indicating a healthy liquidity position to meet short-term obligations. Free cash flow for the year was nearly $1.7 billion, calculated as operating cash flow minus capital expenditures.
Risk profile comparison
Broadcom faces risks from revenue concentration among a limited number of hyperscalers and distributors, making it sensitive to changes in capital expenditure plans from customers like Alphabet. The company is also dealing with legal challenges, including an ongoing legal challenge against EU antitrust regulators regarding document requests tied to the VMware acquisition. Operational risks exist due to a reliance on Taiwan Semiconductor Manufacturing Company for wafer production. Additionally, the highly cyclical nature of the industry creates uncertainty as AI-driven demand continues to shift rapidly.
Micron Technology deals with significant legal and geopolitical hurdles, including a 2026 class action lawsuit involving Samsung and SK Hynix (NASDAQ:SKHY) over alleged supply restrictions. Restrictions from China's Cyberspace Administration have also limited its ability to sell products to certain operators in that region. The production of advanced memory like HBM3E requires complex manufacturing that poses technological risks. Furthermore, heavy capital expenditures on new capacity in the U.S. might not yield expected returns if compliance with the CHIPS Act becomes too burdensome.
Valuation comparison
While Micron appears much cheaper based on its Forward P/E and P/S ratio, Broadcom reflects a premium for its diversified portfolio.
Metric
Broadcom
Micron Technology
Forward P/E
20.9x
6.8x
P/S ratio
19.4x
12.2x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
I'd go with Broadcom. Its custom AI accelerator business is growing at a pace few companies in the semiconductor industry have ever matched, and the forward visibility is extraordinary. Management has secured supply commitments to double AI revenue again next year, and to double it again the year after that. Custom chips for Google, OpenAI, Meta, and Anthropic give it a customer roster that is almost impossible to replicate.
Micron, to its credit, is putting up great numbers with record quarterly revenue, a massive earnings beat, and Q4 guidance pointing to one of the largest single-quarter revenue figures any memory company has ever posted. The company has signed long-term deals with major customers that lock in pricing and volume, which protects the business from the boom-and-bust cycles that have historically made memory stocks a bumpy ride.
But memory markets, even with long-term contracts, carry more cyclical risk than Broadcom's deeply embedded custom chip relationships. For a long-term investor, Broadcom's locked-in AI revenue roadmap and operating margins that keep expanding make it the more durable foundation.
Should you buy stock in Broadcom right now?
Before you buy stock in Broadcom, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
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*Stock Advisor returns as of September 12, 2026.
Sara Appino has positions in Apple and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Apple, Broadcom, Meta Platforms, Micron Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Broadcom vs. Micron Technology: Which Technology Stock Is a Better Buy in 2026?

Key Points
Micron has generated massive revenue and seen its stock price rise by about 628% over the past year.
It is still dirt cheap based on its forward earnings projections.
How long can Micron continue to outperform?
Micron Technology (NASDAQ: MU) has been one of the leaders of this next phase of the artificial intelligence (AI) boom. Its high bandwidth memory chips, built to handle AI workloads, are essential components of AI infrastructure. After all, for AI computing to work, it needs quick access to data. That's where Micron comes in.
As one of just three major players in high bandwidth memory chips, Micron is one of the market leaders. And demand is so high right now, Micron cannot make chips fast enough. Micron long ago sold out of its high bandwidth memory chips for 2026, and now, according to reports, it is essentially sold out for all of 2027.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
This insatiable demand has given Micron pricing leverage, enabling it to charge higher prices and leading to surging revenue and earnings. Every quarter, it is hitting new records. In its fiscal Q3, Micron generated $41.5 billion in revenue, up 82% from Q2 and 357% year over year. Earnings soared 104% to $24.67 from Q2 and grew 1,368% year over year.
These are just staggering numbers that have translated into eye-popping returns. Micron stock is up 628% over the past 12 months and 245% year-to-date.
Micron is also a deep value play
Where does Micron go from here? Its forward price-to-earnings ratio, which projects earnings 12 months out, and its price/earnings-to-growth (PEG) ratio, which looks out five years, depict unyielding growth.
The forward P/E ratio is just 6 -- which puts it in deep value stock territory. In reality, it means that earnings growth is expected to be so strong that the rising stock price will seem muted by comparison.
Further out, the five-year PEG ratio is just 0.15, which is ridiculously low. Given that anything under 1 is considered a value relative to its long-term earnings growth expectations, a PEG ratio of just 0.15 is also in deep value territory.
Because the PEG ratio looks five years out, it suggests that analysts expect the memory chip boom to last for another five years. That roughly syncs with the expectations of many strategists and experts, who see the AI buildout boom lasting until 2029 or 2030. At that point, the necessary factories and infrastructure will be able to meet the demand for memory chips. When that happens, Micron's earnings growth will level off and stabilize, as supply will likely meet demand and Micron will lose some of its pricing power.
Where will Micron be a decade out?
It is impossible to know exactly what will happen over the next 10 years, because Micron is taking steps now to ensure its dominance for years to come, even beyond the boom years.
Specifically, it has been signing long-term five-year contracts with customers called strategic customer agreements (SCAs). In the last quarter, it signed 16 of them with tier 1 (major) clients, with more to come. It projects that the SCAs will generate more than $100 billion in revenue over the course of the contracts, as a floor.
Following the Q3earnings call some of those SCA clients were announced, including Ford Motor Company, General Motors, and several automotive industry suppliers. The SCAs were also signed with data center, consumer device, and industrial customers. On theearnings call CEO Sanjay Mehrotra said there were four very large SCA customers, including data center customers, which likely means some of the major hyperscalers.
"These SCAs accelerate the transformation of our business model. Enhance partnership in technology and innovation, and provide customers with contracted supply assurance," Mehrotra said on the Q3 call with analysts.
When these contracts are all executed, they will account for at least half of the company's revenue.
Beyond five years, it is difficult to predict where Micron will be. Given what is known about the company and its plans, I would expect its growth rates to moderate, yet it should remain an essential cog in the AI economy, which should continue to grow and flourish. As one of just a handful of major players within the memory chip universe, I would expect Micron to be a solid, mature grower. That bodes well for the long-term investing thesis of this stock.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Dave Kovaleski has positions in Micron Technology. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Where Will Micron Be in 10 Years?

Key Points
Nvidia dominates the AI infrastructure market, and it benefits from a durable competitive advantage in its full-stack ecosystem that spans hardware and software.
Micron is the third-largest supplier of DRAM, HBM, and NAND flash memory, but it lacks a durable competitive advantage because memory chips are commodities.
Micron stock declined more than 25% from its high on five occasions in the past decade, a clear sign that the memory chipmaker operates in a cyclical industry.
In 2025, Nvidia (NASDAQ:NVDA) became the first company to achieve a $5 trillion market cap as the artificial intelligence (AI) boom drove its business to new heights. The stock has added 1,390% since the AI boom began in January 2023, and Nvidia is still the world's most valuable company today.
In 2026, Micron Technology (NASDAQ:MU) achieved a $1 trillion market value just 48 days after reaching $500 billion, the fastest pace on record. The stock has added 1,860% since the AI boom began in January 2023, and its business is flourishing today due to a memory chip supply shortage.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Could Micron eventually be a $5 trillion company? Here's what investors should know.
Image source: The Motley Fool
Nvidia is a full-stack computing company
Nvidia designs differentiated chips that are generally superior to alternative solutions. Its graphics processing units (GPUs) are considered the gold standard in accelerating artificial intelligence (AI) workloads. But the company also combines those chips with networking, software, and other hardware to create powerful rack-scale compute platforms.
Nvidia has pricing power for a number of reasons. Its GPUs routinely deliver better results than other AI accelerators when benchmarked across training and inference tasks. Most AI applications are built around its CUDA software platform, which creates a lock-in effect because switching accelerators often requires costly, time-consuming code changes.
Additionally, Nvidia's full-stack strategy that spans hardware and software lets it optimize data center systems for performance and power efficiency in ways that most competitors cannot. That edge typically means Nvidia systems have the lowest total cost of ownership, according to CEO Jensen Huang.
Here's the big picture: Nvidia dominates the AI infrastructure market. It accounts for more than 80% of AI accelerator sales, it's the largest networking company in the world, and it's on pace to be the leading supplier of central processing units (CPUs) this year. Ultimately, Nvidia's involvement at every critical layer of the data center means it would be difficult to displace the company.
Micron is the third-largest memory chip manufacturer
Micron manufactures memory and data storage solutions built on DRAM and NAND flash technology. CPUs store information on NAND (long-term memory) and use DRAM (working memory) to perform tasks. Also, GPUs use a specialized type of DRAM called high-bandwidth memory (HBM) to accelerate complex tasks like AI by rapidly feeding data to the processor's cores.
Micron has benefited greatly from a critical supply shortage in memory chips fueled by the AI boom. However, the company ranks third in DRAM, HBM, and NAND market share after Samsung and SK Hynix, and it lacks a durable competitive advantage because memory chips are considered commodities, as chips from different suppliers are interchangeable.
"We do not believe Micron has an economic moat," wrote William Kerwin at Morningstar. "We view DRAM and NAND as commodity-like products prone to market supply/demand dynamics and steady pricing erosion." However, he also believes the AI boom will create a strong upcycle for the company in the medium term.
Here's the big picture: Micron manufacturers memory chips critical to AI workloads, and the company is growing at a phenomenal pace. Revenue rose 345% last quarter. But price increases made possible by a supply shortage (not something unique about Micron) were the driving force behind that growth, and history says that supply shortage will eventually become a supply glut that causes prices to crater.
Micron is unlikely to be a $5 trillion company in the near future
To summarize, Nvidia possesses structural pricing power because it designs cutting-edge silicon, networking, and software that are difficult for competitors to replicate. But Micron lacks structural pricing power because its commoditized chips are easily replicated, so prices are largely dictated by supply and demand.
Ultimately, Micron has very little chance of becoming the next Nvidia because it lacks a durable competitive advantage and its sales are tied to a highly cyclical market. Historical data corroborates that idea. In the last decade, Micron stock has dropped more than 25% on five occasions, while Nvidia stock has dropped more than 25% on just three occasions.
That past volatility probably foreshadows what investors can expect in the future. Micron currently trades at 22 times earnings, which matches the 10-year average. If memory chip prices fall when the supply shortage eases, as they have following past supply shortages, Micron stock could drop sharply as its earnings decline. For that reason, I doubt Micron will be worth $5 trillion any time soon.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Trevor Jennewine has positions in Nvidia. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Is Micron Stock the Next Nvidia? The Answer May Shock Investors.

Key Points
Applied Materials is a leading provider of the equipment and software essential for manufacturing advanced semiconductors.
Micron Technology is a major producer of memory and storage solutions seeing significant growth from data center demand.
Which semiconductor stock deserves a spot in your portfolio?
Choosing between an equipment powerhouse and a memory giant requires understanding how the next phase of chip demand will unfold. Should you favor Applied Materials Inc(NASDAQ:AMAT) or Micron Technology Inc (NASDAQ:MU)?
Applied Materials provides the tools needed to build advanced chips, while Micron focuses on the memory and storage components those chips require. Both companies are central to the digital economy. Comparing them helps you determine whether to invest in the infrastructure behind the chips or the hardware that powers data processing.
The case for Applied Materials
Applied Materials provides materials engineering solutions, including equipment for chip fabrication. It is a major player among tech stocks serving the semiconductor and display markets worldwide. Two customers accounted for nearly 19% and 15% of net revenue in fiscal year 2025, and customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached about $28.4 billion, representing growth of approximately 4%. The company reported net income of close to $7 billion, yielding a net margin of roughly 25%. This net margin, which measures the percentage of revenue remaining after all expenses are paid, decreased slightly from the previous year.
As of its October 2025 balance sheet, the debt-to-equity ratio was approximately 0.3x. This ratio, which compares total debt to shareholder equity, suggests a conservative use of borrowed money. The company maintained what is called its current ratio of roughly 2.6x, indicating it has more than enough short-term assets to cover its immediate liabilities. Free cash flow, or the cash remaining after paying for capital investments, was close to $5.7 billion in fiscal year 2025.
The case for Micron Technology
Micron Technology develops memory and storage products for data centers, mobile devices, and automotive applications. The company is currently expanding its capacity through a strategic partnership to acquire the P5 facility from Powerchip Semiconductor Manufacturing Corporation. Revenue is heavily concentrated, with about half of sales coming from its top ten customers and approximately 50% tied specifically to the data center market.
In FY 2025, revenue reached about $37.4 billion, which is a significant increase of close to 59% from the prior year. Net income for the period was approximately $8.5 billion, resulting in a net margin of roughly 23%. This performance reflects a substantial recovery from a net loss reported just two years prior.
As of its August 2025 balance sheet, the debt-to-equity ratio was roughly 0.3x. The current ratio, measuring the ability to pay short-term obligations with current assets, was close to 2.5x. Free cash flow, which is operating cash minus capital spending, reached approximately $1.7 billion for the fiscal year ended in 2025.
Risk profile comparison
Applied Materials faces significant risks from geopolitical tensions and trade regulations, particularly U.S. export controls on sales to China. These rules have caused revenue volatility and led to a settlement of nearly $252 million for violations in 2026. The company also deals with the cyclical nature of the industry, which can make it difficult to predict future demand for high-end equipment.
Micron Technology deals with intense competition from rivals such as Samsung Electronics (OTC:SSNLF) and SK Hynix (NASDAQ:SKHY). The company also faces legal challenges, including class action litigation involving allegations of price inflation in the memory market. Its heavy reliance on the data center segment means any slowdown in that specific market could significantly hurt its financial results.
Valuation comparison
Micron Technology currently offers a much lower Forward P/E than Applied Materials, though the P/S ratio comparison is relatively similar.
Metric
Applied Materials
Micron Technology
Forward P/E
26.3x
6.3x
P/S ratio
14.5x
12.3x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Applied Materials is the largest supplier in the world of wafer fabrication equipment for semiconductors. Its wide slate of offerings in chip manufacturing gives it inroads with customers by selling integrated solutions across technologies, making it harder for competitors to dislodge it. The business posted a larger-than-expected rise in sales and income in its third quarter of fiscal 2026, reported last month. The business posted a 25% increase in revenue to $9.1 billion with a 43% jump in net income. Wall Street expects full-year sales to rise 21% to $34.3 billion, with a very healthy 50% gain in net income.
Micron, meanwhile, is enjoying a stunning surge in demand for its products, thanks to (of course) AI. Management recently guided that the fourth quarter fiscal 2026 revenue will be around $50 billion -- that is more than all of 2025 by billions of dollars. According to analysts at Argus, no company besides Nvidia Corp (NASDAQ:NVDA) has consistently blown away sales and earnings estimates in the AI era as consistently as Micron. Consider that for the next fiscal year, 2027, Wall Street analyst consensus projects revenue of $244 billion -- that is a stunning 6.5 times 2025's sales.
There are risks to Micron: it has benefited from a worldwide memory supply crunch that has boosted selling prices, which means that when the crunch is alleviated, prices will likely fall. It also relies on AI remaining a massive spending machine. But the growth is too much to ignore, without any disrespect to Applied Materials' excellent business. At a forward P/E of a little more than 6, Micron isn't exactly in value stock territory, but it appears to be a screaming bargain if projections come to fruition.
Should you buy stock in Applied Materials right now?
Before you buy stock in Applied Materials, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Applied Materials wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.

Applied Materials vs. Micron Technology: Which Technology Stock Is a Better Buy in 2026?

Value stocks are significantly outperforming their growth counterparts this year. The Russell 1000 Value Index has returned roughly 23% year to date, compared with just about 4% for the Russell 1000 Growth Index. Meanwhile, the iShares MSCI USA Value Factor ETF (VLUE) has surged more than 47% year to date.
Some investors have favored attractively valued stocks to reduce their exposure to mega-cap concentration amid heightened market volatility. However, value stocks have also benefited significantly from the AI trade.
While investors traditionally look to growth and tech-focused funds for AI exposure, value ETFs have increasingly become direct and indirect beneficiaries of the AI investment cycle.
Multiples for some tech giants at the forefront of AI deployment have compressed as earnings have accelerated, allowing these legacy tech leaders to be picked up by value screens.
Traditionally value-oriented sectors such as industrials, utilities, and materials have also benefited from rising AI spending.
VLUE tracks the MSCI USA Enhanced Value Index, which scores each security for value characteristics relative to peers within the same GICS sector. Micron (MU) is the fund’s largest position, with about a 22% weight, while information technology accounts for roughly 41% of the portfolio.
The iShares Russell 1000 Value ETF (IWD) tracks the Russell 1000 Value Index. At its rebalance in late June, the index added Amazon (AMZN), Apple (AAPL), and Microsoft (MSFT) as its top holdings. The information technology sector currently accounts for about 20% of the index.
The Vanguard Morningstar Value ETF (VTV) holds large-cap US stocks that display strong value characteristics. JPMorgan Chase (JPM), Micron, and Berkshire Hathaway (BRK.B) are its top holdings.
To learn more, please watch the short video above.
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Are Value ETFs the New AI Trade?

Micron Technology, Inc. MU is taking steps to reduce one of the biggest challenges in the memory industry — sharp swings in revenues and profits. Its new Strategic Customer Agreements (SCAs) could provide more predictable demand and pricing while helping the company manage future memory cycles.
Micron has signed 16 SCAs covering customers across data centers, consumer markets and automotive. Most agreements run for five years through 2030, while automotive deals generally run for three years. Together, the contracts represent about 20% of Micron’s DRAM volume and one-third of its NAND volume.
The financial impact could be significant. During its third-quarter fiscal 2026 results, Micron revealed the SCAs signed so far represent about $100 billion of remaining performance obligations based on minimum committed volumes and pricing. The company also expects to receive about $22 billion in customer deposits and related financial commitments, with roughly $18 billion expected as cash deposits.
The key benefit is greater stability. The agreements are structured as take-or-pay contracts, meaning customers commit to specific volumes. Many also include fixed prices or price floors and ceilings. This can protect Micron from severe pricing declines during weaker memory cycles.
Micron’s recent results show why it is betting on SCAs. Third-quarter revenues jumped to $41.46 billion from $9.30 billion a year earlier, while non-GAAP earnings surged to $25.11 per share from $1.91. This is a massive year-over-year swing, primarily boosted by the ongoing AI-driven demand for memory and storage.
As SCAs expand, MU could gain greater earnings visibility and stronger cash flow planning. This will make Micron's growth story less dependent on short-term memory pricing and potentially more durable over the long term.
MU Rivals’ Strategy to Reduce Business Cyclicality
SK hynix SKHY and Sandisk Corporation SNDK are pursuing strategies similar to Micron by building stronger customer commitments.
SK hynix has finalized long-term agreements with around 10 customers. These multi-year deals are designed to improve supply stability and support longer-term growth. In the second quarter of 2026, SK hynix’s revenues jumped 257% year over year to 79.32 trillion Korean won, while operating profit soared 557% to 60.54 trillion won.
Sandisk is also moving toward longer-term customer contracts through its New Business Model agreements. The company has signed eight such agreements, covering about 50% of its bits in fiscal 2027 and roughly two-thirds in fiscal 2028. These contracts include committed volumes, financial guarantees and pricing structures that can reduce exposure to traditional NAND price swings.
SanDisk's strategy is already supported by strong growth. The company’s fiscal 2026 revenues rose 175% to $20.25 billion, while data center revenues increased 437%.
For Micron, these competitors show that long-term contracts are becoming an important tool across the memory industry. However, Micron's 16 SCAs, covering about 20% of DRAM and one-third of NAND volume, give it significant visibility as it seeks to reduce earnings volatility.
Micron’s Price Performance, Valuation and Estimates
Shares of Micron have surged around 242.3% year to date compared with the Zacks Computer and Technology sector’s return of 18%.
Micron Technology YTD Price Return Performance
From a valuation standpoint, MU trades at a forward price-to-earnings ratio of 6.16, significantly lower than the sector’s average of 20.63.
Micron Technology 12-Month Forward P/E Ratio
The Zacks Consensus Estimate for Micron’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 791% and 113.7%, respectively. Bottom-line estimates for fiscal 2026 have been revised upward over the past 60 days, while estimates have been raised upward for fiscal 2027 in the past 30 days.
Micron currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Micron Bets on Long-Term SCA Deals: Can It Lower Earnings Cyclicality?

Key Points
IonQ and Rigetti Computing both have annual revenue growth of more than 100%.
Despite rapid acceleration across the top line, these pure-play quantum computing companies continue to burn cash at a blistering pace.
Nvidia is making its way into the quantum arena, while surging capex from AI hyperscalers represents an enormous near-term catalyst.
Quantum computing sounds like science fiction to most people, and in some ways it is. Instead of flipping binary bits on or off, quantum machines use qubits that can sit in mixed states. In theory, this allows quantum algorithms to process certain problems that would take a classical supercomputer longer than the age of the universe to solve.
Spoiler alert: We are nowhere close to achieving this feat at scale. For now, quantum computing systems are expensive and still more of a research project than a commercial product. That hasn't stopped some investors from treating a handful of quantum computing stocks as potential lottery tickets, though. IonQ (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI) are two of the cleanest public bets as they actually build quantum computing systems. Nvidia (NASDAQ: NVDA) sits in a different spot.
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Although Nvidia designs GPUs and CPUs that run some of the largest artificial intelligence (AI) training clusters in the world, it is also quietly parlaying existing infrastructure to sit inside of hybrid classical-quantum environments. This approach makes Nvidia a more subtle quantum name compared to pure plays like IonQ or Rigetti. In my eyes, this positioning is precisely why the stock could be the one that actually wins as September unfolds.
What the latest numbers from IonQ and Rigetti tell investors
IonQ recently posted its best quarter yet. Revenue during the second quarter reached $80 million, up 287% year over year. The company also raised its 2026 outlook to between $280 and $290 million. However, after closing the SkyWater foundry purchase at the end of July, management is now talking up to $460 million of combined revenue for the full year.
The problem with IonQ is everything underneath its top-line. Operating losses remain enormous as research, sales, and admin costs dwarf the company's revenue. In reality, IonQ is growing fast from a relatively small base while buying itself a factory. All told, the company is still years and tens of billions of dollars away from the kind of scale that pays infrastructure bills without the need for constant capital raises or narrative-driven support.
Rigetti is even smaller than IonQ. During the second quarter, the company booked $5.1 million in revenue, up 183% year over year. On the positive side, Rigetti's gross margins are improving, and operating losses aren't widening by an amount that would otherwise scare off investors. Moreover, the company was also awarded a grant of as much as $100 million from the CHIPS and Science Act. In reality, though, $5 million of sales against $28 million of operating losses is negligible progress. Rigetti is not at the scale where its business can drive the stock on fundamentals alone.
Both IonQ and Rigetti remain stocks whose prices are mainly driven by headlines around partnerships, a fidelity milestone, or a government check. These storylines can send the stocks flying. But the absence of these very same types of headlines can also send them the other way.
Nvidia is no longer just a GPU company
Nvidia used to be easy to describe: It sold graphics processing units (GPUs) so big tech could build generative models. This description is now incomplete because Nvidia sits across the entire AI value chain. The company designs the processors, the interconnects, the networking, and the software stack that developers use for training AI and inference runs. Moreover, Nvidia's customers are no longer just a handful of cloud infrastructure giants. A cohort of businesses across AI clouds, industrial, and sovereign enterprises (ACIE) is actually growing even faster than the traditional hyperscalers.
This same approach to building a full-spectrum platform is now showing up in Nvidia's quantum ambitions. The company does not actually build its own quantum processors. Instead, it builds the classical hardware and software side that quantum computing machines will need if the technology ever becomes useful at scale.
In other words, Nvidia can provide the GPUs that are used to simulate quantum optimization problems, the low-latency links that allow quantum chips to talk to a supercomputer, and the software layer that helps researchers treat a quantum device and a GPU cluster as one unified system.
Nvidia is quietly selling the compute and the plumbing that connects quantum environments to classical computing. Even when a lab or a government agency experiments with hardware from IonQ or Rigetti, there is a good chance Nvidia silicon and software are also in the loop.
Why Nvidia stock may make a move in September
Throughout earnings season, investors learned that cloud hyperscalers and their AI-native cousins are spending at an almost cartoonish pace. Combined capital expenditures (capex) among the largest hyperscalers are running close to $800 billion this year and they anticipate spending to rise to $1.3 trillion in 2027.
A huge slice of that spending will go to Nvidia and the companies that feed it memory, packaging, and power. This is precisely why Nvidia just projected roughly 70% revenue growth next fiscal year and said its customer demand is actually running even hotter than that.
The limiting factor is supply, especially high bandwidth memory (HBM). In turn, Nvidia is committing $279 billion in long-term supply agreements to lock in enough memory and storage from the three big producers -- Micron Technology, SK Hynix, and Samsung. This is a data center and chip story that can be measured every quarter.
By comparison, quantum computing is still a rounding error in these same AI infrastructure budgets. While the government and some research labs continue to write checks, AI hyperscalers are mostly watching, running experiments in-house, and waiting. That leaves IonQ and Rigetti primarily as narrative stocks, gaining when the story is hot and stalling when it gets quiet.
On the other hand, Nvidia already has the secular tailwinds of AI infrastructure spending that are happening right now. If big tech chooses to explore quantum-AI hybrid applications, Nvidia almost certainly plays a part in those projects.
This combination of visible, large-scale demand plus a credible seat at the quantum table is why I think Nvidia stock has a much clearer near-term catalyst than pure plays like IonQ or Rigetti, both of which still have to prove they can turn scientific progress into predictable revenue and profitable unit economics.
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Adam Spatacco has positions in Nvidia. The Motley Fool has positions in and recommends IonQ, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.

Not IonQ, Not Rigetti Computing. This Quantum Computing Stock Could Be September's Biggest Winner.

Key Points
Sandisk and Micron are primed to cash in on a generational demand shift.
Both stocks are cheap and will provide monster returns during the next few years.
The supply crunch in the memory chip industry is becoming quite annoying. Whether you're a consumer looking to buy a new laptop or phone, or a business that wants to obtain cloud computing hardware, it has caused prices on these units to skyrocket. In fact, one of the artificial intelligence (AI) hyperscalers, Amazon (NASDAQ: AMZN), bumped its capital expenditures from $200 billion to $220 billion solely based on higher memory prices. That's not an insignificant increase, and there are only a handful of companies that actually benefit from soaring memory chip prices.
I don't think we're out of the woods yet in terms of memory chip availability, and Sandisk (NASDAQ: SNDK) and Micron (NASDAQ: MU) are primed to benefit as a result. Despite these two having a great start to the year, I still think they're incredible buys right now, as it will be some time before these stocks take a hit due to the cyclical nature of the business.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why is the memory chip industry cyclical?
Nearly all industries have some level of cyclicality, but some of them fluctuate more than others. Demand curves may rise and fall, but how scarce or unique the product is can dictate if it's affected by the rise and fall of demand and supply. In the memory chip industry, there isn't a lot that separates one memory chip from another. This causes its clients to swap out memory components based on who has the best availability or price, which gives suppliers like Micron and Sandisk almost no bargaining power.
So, memory chip prices end up closely linked to supply and demand. Fortunately for these two, the demand for memory chips right now is unprecedented due to the sheer amount of money being spent on the AI build-out. This has consumed nearly all available production capacity, leading to soaring chip prices. In fact, Sandisk informed investors during its most recent earnings announcement that two-thirds of its revenue increase came from rising prices, while a third came from increased output. That's an unbelievable stat, and until demand falls or production rises, this mechanism will stay in place, and we may not have seen the last of soaring prices.
The notion of demand falling is highly unlikely, as AI hyperscalers project they will spend more in 2027 than they did in 2026. Nvidia (NASDAQ: NVDA), a huge buyer of memory chips, projects the top five AI hyperscalers will increase their spending from $800 billion in 2026 to $1.3 trillion in 2027. It's a race to build out the most computing capacity available, and that won't stop for several years.
So, the only way this problem is being alleviated is through increased supply, which Micron and Sandisk are working toward. Micron plans to have new production facilities up and running by mid-2027 and in 2028. Sandisk and a partner are planning to spend more than $32 billion through 2032 to expand production.
It remains to be seen if these increases make a difference, but with AI demand expected to last for several years, it's likely that memory chip prices will remain elevated for some time, which bodes well for both stocks.
Micron and Sandisk are dirt cheap
Because the market will always be fearful of a cyclical drop in these two, it will won't give them any sort of premium valuation. It will take each company quarter by quarter, and both companies trade at a reasonable trailing price-to-earnings (P/E) ratio.
However, if forward earnings projections are used, both stocks look cheap.
If both stocks can deliver on expectations and have their valuations rise to the 20 times trailing earnings price target they're at now, that could lead to both stocks tripling, making them no-brainer buys. We'll see how the market reacts during the next few years, but with AI demand not letting up, I think both stocks are primed to cash in.
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Keithen Drury has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Amazon, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.

These 2 Hardware Leaders Will Cash In on the Next Data Center Memory Crunch

Key Points
Amazon, Micron, and Broadcom each play key roles in the booming business of AI.
Amazon sees a particular trend continuing until at least 2028.
Amazon (NASDAQ: AMZN) may be most recognized for its e-commerce business -- after all, people worldwide turn to the platform to order everything from groceries and essentials to mass merchandise. And it's also become a key provider of entertainment, including books, movies, and access to important sporting events.
But an enormous source of growth for the company these days is actually from another business: its cloud computing arm, Amazon Web Services (AWS). This business, thanks to its position as the world's No. 1 cloud services provider and its investment in artificial intelligence (AI), has seen revenue explode higher in recent quarters. And the trend may not be over as AI is applied more frequently in the real world.
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All of this is great news for Amazon and its investors. But the positive news doesn't stop here, and instead, overflows into the cups of Micron Technology (NASDAQ: MU) and Broadcom (NASDAQ: AVGO). Amazon chief Andy Jassy just made a move that should excite investors in these tech giants.
Amazon's position in AI
Before we dive in, it's important to understand Amazon's position in the AI market, a market marching toward trillions of dollars in value by early next decade, according to analysts' estimates. The company's AWS, as a cloud provider, offers the setting for AI development and use to take place. Developers and users of AI turn to AWS and other clouds to run AI workloads, and this has created high demand for capacity. AWS and other major clouds, also known as hyperscalers, have invested billions of dollars to build out capacity in order to serve this demand.
Where do Micron and Broadcom fit in? Micron is a key provider of the memory needed for AI to operate correctly -- and demand for various forms of memory is particularly high at this stage of the AI boom, as AI models, in the inference process, are thinking through problems and developing solutions. Memory demand has surged, resulting in tight supply, and memory prices are climbing. This has supercharged Micron's revenue growth and stock performance, but the company faces the challenge of ensuring a certain level of supply amid this intense demand.
Broadcom offers a wide range of leading networking products, including switches and routers, and it helps customers, including hyperscalers, build their own custom chips, nicely suited to specific tasks. These businesses have pushed Broadcom to tremendous growth in recent quarters, and the opportunity may be in its early stages -- as I noted earlier, the real-world use of AI should boost the need for necessary products and services, such as those of Broadcom.
A look at capital spending
Now, let's consider Amazon chief Andy Jassy's latest move -- and what it means for these AI giants. In Amazon's latestearnings call Jassy announced that the company's capital spending for the year would rise to $220 billion, up from $200 billion, to address soaring demand.
"Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027, too," Jassy said.
This increased spending on AI infrastructure build-out, as well as the message regarding enormous demand, should translate into more revenue growth for Micron and Broadcom, providers of key products within data centers.
Jassy even added that demand Amazon is seeing for 2028 is "striking," more evidence that this isn't just a short-term trend but an ongoing movement that may reshape the revenue landscape for companies such as Amazon, Micron, and Broadcom.
In recent times, investors have worried about one particular risk concerning AI: that the future revenue opportunity may fall short, considering today's high levels of spending on infrastructure. But the evidence we're seeing so far, including this latest move by Andy Jassy, suggests just the opposite: This investment is needed just to keep up with demand. And if this continues, there could be many bright days ahead for Micron and Broadcom -- and their shareholders.
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Andy Jassy Just Made a Move That Should Excite Micron and Broadcom Investors

Key Points
Micron and other tech stocks are losing ground as investors weigh macroeconomic risk factors.
The stock also faced pressures due to concerns about regulations for the AI market and employee compensation news.
Micron (NASDAQ: MU) stock had a tough day on the market on Thursday, with the company's share price declining 4.7% in the day's trading. Meanwhile, the S&P 500 and the Nasdaq Composite each declined 0.6% in the session. The memory chip leader's share price had been down as much as 5.3% in the session.
The broader market saw bearish momentum in Thursday's trading as investors repositioned in response to macroeconomic risk factors. In addition to concerns about Treasury bond yields, oil prices, and inflation, Micron's share price was also pressured by regulatory concerns surrounding the artificial intelligence industry and news about the company's employee compensation plans.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The macro picture is making investors more risk averse
Yields on U.S. Treasury bonds are rising despite amid moves by the Treasury Department to ramp up its buybacks of government bonds. While buybacks are often a mechanism for tamping down on bond yields, that hasn't been working recently. The yield on 10-year U.S. Treasury bonds hit 4.84% on Thursday -- marking the highest level since 2023.
High bond yields tend to pull investment dollars out of the stock market and typically reflect a more risk-averse environment. Along with rising oil prices and concerns about the potential for hotter-than-expected inflation in this week's Consumer Price Index (CPI) report, the macroeconomic picture is causing some jitters.
AI fears and increased expenses for Micron
In response to concerns about the potential for artificial intelligence systems to go rogue or otherwise create destructive outcomes, there's been a recent uptick in discussion about the need for regulatory frameworks and guardrails for the industry. While new regulations would be unlikely to dramatically alter demand for Micron's products, they could create growth headwinds.
Adding to selling pressures on Micron stock, the company is offering huge bonuses for employees at its plants in Taiwan in order to resolve potential strike issues. While boosting employee pay packages looks like the right move at a time when the company is thriving and enjoying incredible demand for its products, the move could have a modest impact on margins.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Keith Noonan has positions in Micron Technology. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.
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